Interactive Brokers (IBKR) Review: Hong Kong and US Stock Fees, Investor Protection, the Apps and the Actual Conditions of the Referral Stock Award

Interactive Brokers Hong Kong Limited (CE number ADI249) is an SFC-licensed corporation holding Type 1 (dealing in securities), Type 2 (dealing in futures contracts) and Type 3 (leveraged foreign exchange trading) licences. It is a participant of the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange, and its office is at Suite 1512, Two Pacific Place, Admiralty. IBKR's account opening notice states that applicants resident in Asia, other than in India, Hong Kong and Japan, have their accounts opened by Interactive Brokers LLC in the United States; accounts for Hong Kong residents are therefore held by the Hong Kong company.

At group level, IBG LLC reported equity capital of US$22.3 billion as at the second quarter of 2026, and Interactive Brokers LLC is rated "A-" by Standard & Poor's. Note that IBKR is not a bank, and cash in the account is not protected by the Deposit Protection Scheme. Hong Kong's Investor Compensation Fund covers only products traded on HKEX and securities traded through Northbound Stock Connect, up to HK$500,000 per investor per default. Securities that Interactive Brokers Hong Kong holds in custody with Interactive Brokers LLC are protected by the US Securities Investor Protection Corporation (SIPC) up to US$500,000 (with a cash sub-limit of US$250,000, which applies only to cash held there as collateral for short stock or option positions), supplemented by excess insurance from Lloyd's of London (up to a further US$30 million, of which US$900,000 for cash, subject to an aggregate limit of US$150 million). Neither SIPC nor the excess insurance covers futures or options on futures. These protections apply if the broker fails; they do not cover a fall in the market value of your investments.

On its regulatory record: on 28 April 2025 the SFC reprimanded Interactive Brokers Hong Kong and fined it HK$4.2 million. Between December 2017 and October 2020, because of a programming error, the company failed to send standing authority renewal notices to 7,911 clients and then lent their Hong Kong stocks under securities borrowing and lending agreements on the basis of authorities that had expired. The SFC noted that the company had self-reported the matter and that there was no evidence that any client had suffered a loss as a result.

IBKR offers stocks, options, futures, foreign exchange, bonds and funds across 175 markets in 40 countries and territories. A Hong Kong account can trade Hong Kong stocks and A-shares through Northbound Stock Connect, and eligible US, Canadian and European stocks can be bought as fractional shares by amount. For Hong Kong IPO subscriptions, a 1% brokerage commission is charged on the value of the shares allotted, plus the SFC transaction levy of 0.0027%, the AFRC transaction levy of 0.00015% and the exchange trading fee of 0.00565%; the application handling fee is currently HK$0 under a promotional arrangement that may change.

You may choose a cash account or a margin account when applying. The mobile apps are IBKR Mobile and IBKR GlobalTrader, and on a computer you can use Trader Workstation (TWS). IBKR's Hong Kong website states that Hong Kong regulations require the use of a passkey, and accounts that have not enabled one are restricted. IBKR's Hong Kong website does not describe any debit card available to Hong Kong clients.

For market data, real-time streaming quotes for US stocks are free. Level 1 quotes for Hong Kong stocks are free for accounts registered outside mainland China that have Hong Kong stock trading permissions, and Level 2 (depth) quotes cost HK$225 a month. To subscribe to any market data, the account must maintain net assets of at least US$500.

There are two pricing plans for Hong Kong stocks. Fixed pricing is 0.08% of trade value, with a minimum of HK$18 per order; tiered pricing is 0.05% for monthly trade value of HK$15 million or less, with the same minimum of HK$18 per order. In IBKR's own example, buying 400 shares at HK$70 incurs a fixed commission of HK$22.40. Fixed pricing for US stocks is US$0.005 per share, with a minimum of US$1 per order and a maximum of 1% of trade value (in IBKR's example, 100 shares at US$25 cost US$1.00); tiered pricing starts at US$0.0035 per share, with a minimum of US$0.35 per order, and exchange and regulatory fees are charged separately. IBKR states that its pricing carries no added spreads, ticket charges, platform fees or account minimums.

Take, for example, a purchase of HK$50,000 of Hong Kong stocks on fixed pricing: commission of HK$40; stamp duty of HK$50 (since 17 November 2023, buyer and seller each pay 0.1% of the trade value); the SFC transaction levy of HK$1.35, the AFRC transaction levy of HK$0.08 and the exchange trading fee of HK$2.83 (calculated at the rates shown in IBKR's IPO fee table), for a total of about HK$94 before CCASS fees. Stamp duty and the levies are payable again on a sale.

For currency conversion, manual conversions are charged 0.20 basis points of trade value, with a minimum of US$2 per order: the commission calculated on a US$10,000 conversion is only US$0.20, so the minimum of US$2 is charged. If you buy US stocks directly with Hong Kong dollars and trigger an automatic conversion, IBKR charges no separate commission but applies a 0.03% mark-up or mark-down to the exchange rate, about US$3 on US$10,000, which is more than a manual conversion.

Holders of US stocks should be aware of dividend withholding tax: Hong Kong does not appear on the US Internal Revenue Service's list of tax treaties, so Hong Kong residents cannot claim a reduced treaty rate on US dividend withholding tax. We were unable to verify the actual withholding rate on an official page; refer to your IBKR account statements. Note also that the fees above apply only to IBKR's direct clients; accounts opened through another broker (an introducing broker) may have to pay additional commissions set by that broker.

IBKR pays no interest on the first US$10,000 (or equivalent) of idle cash in each currency. For accounts with net assets above US$100,000, US dollar cash above US$10,000 earns 3.38% p.a. (as read on 12 October 2026); below US$100,000 of net assets, the rate is reduced proportionately. In IBKR's examples, net assets of US$80,000 with cash of US$20,000 earn a blended rate of about 1.352% p.a.; net assets of US$320,000 with cash of US$80,000, about 2.958%; and net assets of US$20,000 with cash of US$5,000, 0%. The rate on Hong Kong dollar balances is set by reference to external benchmarks and bank rates and is capped at 2.00%; use the official calculator for the exact rate.

For margin loans, the annual rate on the first HK$780,000 borrowed in Hong Kong dollars is 5.185% (benchmark plus 2.5%), and on the first US$100,000 borrowed in US dollars 5.38% (benchmark plus 1.5%); larger balances attract lower rates on the higher portions. Margin magnifies losses, so assess whether you could bear them before borrowing.

Hong Kong clients can deposit Hong Kong dollars or offshore renminbi through eDDA from a Hong Kong bank account in their own name. Banks generally make no charge, and the funds can be traded immediately. IBKR generally rejects third-party deposits and does not accept cash deposits; if cash is deposited, a special handling fee of 1% of the amount (minimum US$50) is charged.

The first two withdrawals each calendar month are free; thereafter, each Hong Kong dollar electronic transfer costs HK$8, each Hong Kong dollar bank transfer HK$95 and each US dollar wire US$10, plus any bank and correspondent bank charges. If you verify your identity at account opening by linking a Hong Kong bank account (see below), deposits and withdrawals are restricted to that bank account and to Hong Kong dollars, offshore renminbi and US dollars until you complete verification by another method.

New clients who open an account through the referral link on this page and are approved receive Class A common stock of Interactive Brokers Group based on their net deposits in the year after their first deposit (the award period): US$1 of stock for every US$300 (or the equivalent in another currency) of net deposits, capped at US$1,000, which requires net deposits of US$300,000. Both cash and other transferred assets (at fair market value) count as deposits, so transferring stocks from another broker also builds up the award. The terms set no minimum deposit. The number of shares is updated daily and shown in the account as "Welcome Share Balance", and it becomes fixed when the award period ends. Each referred client can receive the award only once.

Eligibility: you must never have held an IBKR account before receiving the referral invitation; you must apply in accordance with the invitation's instructions (that is, through the referral link) and be approved; and the referrer's account must still be active on the day of your first deposit. Residents of mainland China, Spain, Portugal, Japan, Denmark, Israel and Poland are not eligible; tax-advantaged accounts, accounts opened with IBKR's Canadian or Indian entities, members of the referrer's family and people living at the same address as the referrer also do not receive the stock. IBKR may withhold the award if it considers an account to involve suspicious activity or abuse of the programme, and may amend or terminate the programme at any time.

The referral link on this page is this site's referral link. The terms do not require the referred client to deposit US$10,000 within 30 days and maintain it for a year; whether you receive stock, and how much, depends on the eligibility conditions above and your first-year net deposits.

The award is equivalent to about 0.33% of net deposits. At US$1 to HK$7.80, net deposits of HK$100,000 (about US$12,821) earn about US$42.7 of stock, roughly HK$333; in the example in the terms, net deposits of US$30,000 (about HK$234,000) earn US$100; and the US$1,000 cap requires net deposits of US$300,000 in the first year, about HK$2.34 million.

The number of shares is calculated at IBKR's closing price on the day of each deposit, after which its value rises and falls with the share price, and it cannot be sold during the lock-up, so its actual value after a year may be higher or lower. While holding the shares you receive dividends and can exercise voting rights. For investors who already intended to keep funds with IBKR, this is an additional return that requires no extra steps; but a return of about 0.33% is not a sufficient reason to move money that you would not otherwise have invested. When choosing a broker, fees, the platform and protection should matter more than the award.

If you withdraw funds during the award period, IBKR takes back shares on a first-in, first-out basis using the formula "amount withdrawn ÷ net deposits before the withdrawal × shares before the withdrawal", regardless of the share price on the day. In the example in the terms, US$30,000 deposited when the share price is US$50 earns 2 shares; withdrawing US$15,000 the next day reduces this to 1 share, and the net value of the award falls from US$100 to US$50. Once the award period ends, the number of shares is fixed, and later withdrawals no longer affect the shares already awarded.

Each tranche of shares cannot be sold, transferred out or used to settle derivatives for one year from the date it is granted. If the account is closed or ceases to be in good standing during that period, unvested shares are forfeited; and if IBKR later determines that the terms were not complied with, it may reclaim the shares even after the lock-up has ended, or require you to pay their market value at the end of the lock-up.

Two further points are easily overlooked: in a margin account, IBKR may sell the award shares at any time to meet a margin requirement; and IBKR may withhold shares to cover withholding tax. You are responsible for any tax reporting related to the award.

As at 12 October 2026, IBKR Mobile was rated about 4.4 on the App Store (Hong Kong), from 2,885 ratings, and 4.6 on Google Play, from 76,363 ratings worldwide, with more than 1 million downloads; IBKR GlobalTrader was rated about 3.9 on the App Store (Hong Kong), from 67 ratings, and 4.5 on Google Play, from 2,760 ratings, with more than 500,000 downloads. Its global TrustScore on Trustpilot was 3.1, from 5,521 reviews, of which 29% were one-star.

The more common recent complaints include: passkey and QR code login requiring a second device, and requests to re-authenticate when withdrawing; slow logins, app freezes and system outages, including during weekend maintenance; a cluttered interface with many embedded web pages; strict account opening and source of wealth checks; and slow customer service replies. Positive reviews centre on the low fees, the wide market coverage and the availability of Chinese-language customer service.

When applying, you will need proof of identity (a Hong Kong permanent identity card, or a passport for non-permanent residents) and proof of address, such as a utility bill, credit card statement or government letter issued within the last three months, or a tenancy agreement. Applicants for a cash account must be aged 18 or over, and for a margin account 21 or over; IBKR's Hong Kong website does not state how long approval takes.

As required by the SFC, Hong Kong applicants must verify their identity in one of the following ways: one, by linking a Hong Kong bank account in their own name, after which deposits and withdrawals are restricted to that account and to Hong Kong dollars, offshore renminbi and US dollars, a restriction that can be lifted after opening by switching to another method; two, by visiting the Admiralty or Kwun Tong office in person between 9 a.m. and 6 p.m., Monday to Friday; three, by posting a copy of their proof of identity certified by a notary public, practising solicitor, practising accountant or SFC licensee, together with a confirmation form; or four, by posting a copy of their proof of identity and a confirmation form together with a cheque for at least HK$10,000 drawn on a Hong Kong bank account in their own name.

The process is to follow the referral link on this page to IBKR's application page, complete the application, upload your documents and complete one of the identity verification methods, then fund the account once approved. The terms require you to apply in accordance with the referral invitation's instructions, so you must use the referral link from your very first application.

Before closing the account, you must first sell or transfer out all holdings, then submit a request in Client Portal under Settings > Account Configuration > Close Account. If you close the account before the referral shares' lock-up has ended, unvested shares are forfeited.

Suitable for: investors who care about commission and currency conversion costs and need to trade several overseas markets; people who can manage a fairly complex platform and passkey login; and new clients who already intend to deposit funds with IBKR or transfer holdings from another broker, and are willing to leave the money in place for the first year.

Not suitable for: people who trade small amounts of Hong Kong stocks only occasionally and want a simple interface; people who need immediate telephone customer service; people who may close the account or withdraw most of their funds within a year; residents of ineligible places such as mainland China and Japan; and anyone who has previously held an IBKR account.